Medicare Reveals Plans for Ozempic Price Negotiations

It's one of over a dozen drugs in the spotlight

Ozempic dispenser
Ozempic is one of 15 drugs discussed in a new announcement.
Steve Christo - Corbis/Corbis via Getty Images

In August of 2024, the U.S. Department of Health and Human Services began negotiating drug prices for 10 different types of medication covered by Medicare Part D. The groundwork for the negotiations was established under the Inflation Reduction Act, and it didn’t stop with the initial 10. Now the same agency has announced the next slate of drugs scheduled for negotiations, and a number of popular diabetes and weight loss medications are on the list.

Ozempic, Rybelsus and Wegovy — all GLP-1 agonists — are among those cited for the next round of Medicare drug price negotiations. (Technically, all three count as one entry.) Rounding out the list of 15 are Trelegy Ellipta, Xtandi, Pomalyst, Ibrance, Ofev, Linzess, Calquence, Austedo and Austedo XR, Breo Ellipta, Tradjenta, Janumet and Janumet XR, Xifaxan, Vraylar and Otezla.

The drugs’ manufacturers will have until February 28 to decide if they wish to negotiate with the Centers for Medicare & Medicaid Services; price changes would then go into effect in 2027. Under the law, a third cycle of drug price negotiations will follow, covering another 15 drugs. Future cycles could encompass “up to 20,” according to the agency’s announcement.

“Today’s announcement is pivotal — the Inflation Reduction Act is lowering prices for people on Medicare,” said Xavier Becerra, Health and Human Services Secretary, in a statement. “HHS will continue negotiating in the best interest of people with Medicare to have access to innovative, life-saving treatments at lower costs.”

The Future of Ozempic Is Coming Into Focus
Compounding pharmacies are still doing a brisk business in alternatives

The Department of Health and Human Services noted that the first round of drug price negotiations will go into effect next year. They estimate that Medicare recipients will save approximately $1.5 billion annually once those new prices have gone into effect. This latest announcement also begs the question: will the next round of negotiations open the door to Medicare recipients losing weight and saving money in one stroke?

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